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  • Raising cost of materials and fuel

    what language are you using in your contracts to protect yourself? this will help a lot of people. I know there are some smart people out there.
    Thank's in advance, Tool
    I can build anything You want , if you draw a picture of it , on the back of a big enough check .

  • #2
    Two options I know of by experience.

    1) Put a time limit for bids on your proposal. In California, anymore this would be less than 30 days.

    2) If you are doing a large amount of work in one area, and have the capital, I would suggest bulk buying say, copper, and holding onto it for for future jobs. It has always sounded to me that you are a smaller general contractor, at which point this would probably not be a good option, because this only works if you are using the material extensivly.
    the dog

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    • #3
      my supply house is only holding the price on copper for the day. another contractor bought 150,000 in copper the other day for a job he was awarded. can't take a chance trying to predict the price of copper.

      i'm lucky that i was able to purchase enough 1/2'' - 1'' a couple of years ago and still sitting on it. stored indoors and it still shines

      rick.
      phoebe it is

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      • #4
        http://futures.tradingcharts.com/chart/CP/66

        If your supplier is crying about the price of copper show him this chart, copper has come way down in price over the last several weeks.

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        • #5
          Originally posted by music
          http://futures.tradingcharts.com/chart/CP/66

          If your supplier is crying about the price of copper show him this chart, copper has come way down in price over the last several weeks.
          Obviously you do not work in the piping trades. Those of us who do are such idiots that we pay these high prices because we haven't seen your chart. Good thing you posted here, otherwise we dumb-asses would go on buying copper tubing for excessive prices.

          I think we should all, and I am speaking of everyone in the piping trades, send a big salute to "music" who cleared us up on the price of copper tubing. The piping trades are know saved, "music" has showed us the way to increasing profits, raising wages, and staying afloat in a competitive market.

          Josh, What happened to having to list occupation? "Worker?"
          the dog

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          • #6
            A lot more goes into the price of copper than the price of the raw material. Besides a .4000 in the last few weeks has little to do with the increase of 1.6000 over the last 6-months (even more of an increase over the last 12-months).The supply houses do not buy a raw commodity they buy rail cars full of processed tubing. For the final product to show a change in the cost of the raw materials takes months and even then it is only after more expensive inventories are sold.Mark.
            "Somewhere a Village is Missing Twelve Idiots!" - Casey Anthony

            I never lost a cent on the jobs I didn't get!

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            • #7
              As the Dog said bulk buys are one way to hold the line on material costs.

              Most of the larger mechanical shops in our area do this to the extent that their resources allow them to. They look at past usage and at their upcoming projects and buy enough material to last them a year or more, which can be a couple hundred thousand of feet of copper. They get to negotiate the best possible price in these quantities. They then warehouse it in their shops until needed or use virtual inventory and have it shipped to their shop or various jobsites as needed.
              "It's a table saw, do you know where your fingers are?" Bob D. 2006

              https://www.youtube.com/user/PowerToolInstitute

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              • #8
                agreed

                Originally posted by ToUtahNow
                A lot more goes into the price of copper than the price of the raw material. Besides a .4000 in the last few weeks has little to do with the increase of 1.6000 over the last 6-months (even more of an increase over the last 12-months).The supply houses do not buy a raw commodity they buy rail cars full of processed tubing. For the final product to show a change in the cost of the raw materials takes months and even then it is only after more expensive inventories are sold.Mark.
                and there are more things than just that like the rise in fuel costs so now the plants that make the tubing has to pay more just to make the tubing and the ship and rail roads are paying more more for fuel so every one pays more for copper and trust me it isn't just copper going up steel is as well i like the estwing hammer i have had for the last 3 years but i lost is some where that 3 years abo was 25.99 and now the same hammer from the same store (home depot) is now 34.99 i mean dand 9 bucks in 3 years thats alitte steep don't you think? perrt much all metals have gone way up in the last 2 years but more so in the last 8 months has it gone out of site.so the next time you fill up remember you are only buying a few gallons and it hurts you so imaging what it would be like to buy 2 rail way tankers aday of fuel to make all this pipe and every thing else
                9/11/01, never forget.

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                • #9
                  Originally posted by PLUMBER RICK
                  my supply house is only holding the price on copper for the day. another contractor bought 150,000 in copper the other day for a job he was awarded. can't take a chance trying to predict the price of copper.

                  i'm lucky that i was able to purchase enough 1/2'' - 1'' a couple of years ago and still sitting on it. stored indoors and it still shines

                  rick.

                  AND UNDER LOCK & KEY & ALARMS
                  Charlie

                  My seek the peek fundraiser page
                  http://observatory.mountwashington.o...nal&fr_id=1040


                  http://www.mountwashington.org/weather/conditions.php

                  new work pictures 12/09
                  http://public.fotki.com/hvachawk/

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                  • #10
                    “Obviously you do not work in the piping trades.” Plumbdog10, did you figure that out all on your own, that I am not in the piping trade?

                    I came to this forum because I had a problem with a floater on a pump and was looking for comments. I tried to contribute by making a comment regarding the prices of copper.

                    Forgive me if I disrupted your professional only thread by making a comment. I did not realize that this was for professionals only. I did not read the forum rules that said NON-PROFESSIONALS NOT WELCOMED. I just figured that Ridgid would want a forum that customers using Ridgid products can go visit and ask questions. Perhaps I should e-mail them to request to set up another forum, “DUMP-*** PRODUCT USERS”.

                    The reason I posted the copper pricing is because I am in the process of expanding my business and the contractor tried to bid up the price because of copper. I guess he thought that I was a dump-*** and would not take the time to see if an increased price was justified. I am now going with a different contractor at $2,500 less. The new contractor laughed and said he already built-in the current price of copper. So I guess your statement regarding dump-asses is correct regarding the contractor who tried to bid up the job and did not get the job.

                    I bet you are a lot of fun to work with :-)
                    Last edited by music; 06-19-2006, 09:53 AM.

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                    • #11
                      Or just had a bad day

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                      • #12
                        thats OK we all do and some times it only takes something small to set us off .

                        stick around its not all that bad
                        Charlie

                        My seek the peek fundraiser page
                        http://observatory.mountwashington.o...nal&fr_id=1040


                        http://www.mountwashington.org/weather/conditions.php

                        new work pictures 12/09
                        http://public.fotki.com/hvachawk/

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                        • #13
                          Music,


                          The correct word is "dumb-***", not "dump-***."

                          I know, I have been a "dumb-***" all of my life. You are not necessarily a dumb-***, but your post was. You must have realized, with a little thought, that plumbing contractors are more framiliar with copper tubing prices than you are.
                          the dog

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                          • #14
                            "that plumbing contractors are more framiliar with copper tubing prices than you are."
                            Yes, for copper tubing prices, for sure. However, for the price of copper, I am a commodities broker and sit in front of a screen all day long, so I do know a little bit about the price of copper.

                            "The correct word is "dumb-***", not "dump-***."
                            I guess I am......LOL....

                            Can you comment on the float from the thread I started? "Defective Float - Sump Pump "

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                            • #15
                              music,As a friendly word of warning, construction is different than trading in commodities. When honest contractors give you a price it should be based on real cost plus profit. The way some contractors arrive at a low bid is to cheat on either materials or labor or both. Make sure the $2,500 difference in your plumbing bid is because the higher bid was the bad bid not the honest bid.
                              "Somewhere a Village is Missing Twelve Idiots!" - Casey Anthony

                              I never lost a cent on the jobs I didn't get!

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